In a significant regulatory move, the Reserve Bank of India (RBI) has levied a monetary penalty of ₹26.70 lakh on India Post Payments Bank Limited. The fine, imposed under the Banking Regulation Act, 1949, results from the bank's non-compliance with RBI's directives concerning 'Customer Service in Banks.'
Key Details:
- Date of Order: January 15, 2025
- Penalty Amount: ₹26.70 lakh (Rupees Twenty-Six Lakh Seventy Thousand)
- Reason for Penalty:
- Unauthorized upgradation of Savings Bank accounts.
- Levying annual charges without obtaining customers’ consent.
Background:
The penalty follows a Statutory Inspection for Supervisory Evaluation (ISE) conducted by the RBI, which revealed regulatory lapses as of March 31, 2023. Despite the bank’s response to the show-cause notice, the RBI found grounds for penalty based on deficiencies in regulatory compliance.
Implications:
The RBI's action underscores its commitment to ensuring customer rights and adherence to regulatory norms. The central bank clarified that the penalty does not impact the validity of transactions between the bank and its customers.
